President Putin suggests immediate halt to European gas supplies as Iran crisis drives global energy prices to premium levels

Russian President Vladimir Putin suggests halting gas to Europe early as the Iran crisis creates high-priced "premium" markets elsewhere.

By: AXL Media

Published: Mar 5, 2026, 7:27 AM EST

Source: The information in this article was sourced from Brecorder

Strategic pivot amid Middle East instability

President Vladimir Putin stated on Wednesday that it might be more "profitable" for Russia to immediately cease gas supplies to the European market. This deliberation is a direct response to the global energy chaos triggered by the military conflict in Iran, which has paralyzed shipping through the Strait of Hormuz and shut down major production facilities in Qatar and Saudi Arabia. Putin argued that as European gas prices rise, Russia is seeing the emergence of new, "premium" buyers willing to pay higher prices, making traditional European contracts less attractive to Moscow’s state-controlled energy giants.

Response to EU's "misguided policies"

The Kremlin’s current stance is a reaction to the European Union's stated goal of eliminating all Russian pipeline gas imports by late 2027 and banning new short-term LNG contracts starting in April 2026. Putin characterized these plans as "misguided policies" and suggested that Russia should establish itself in opening markets now rather than waiting for the EU's deadlines. While he clarified that an official decision has not yet been made, he confirmed instructions for the government to work with companies like Gazprom to evaluate the feasibility of an immediate total withdrawal from the European theater.

The hollowing of the European market share

The potential halt comes at a time when Russia's influence over European energy has already reached historic lows. Prior to the 2022 invasion of Ukraine, Russia supplied approximately 40% of the EU’s pipeline gas; that figure dropped to just 6% last year. The financial impact on Russia’s energy sector has been stark, with Gazprom’s market capitalization plummeting from over 330 billion dollars in 2007 to just 40 billion dollars today. Putin's remarks suggest a desire to cut losses in the West and solidify a long-term energy alliance with China and other Asian consumers.